Why Did Digital Currency Plunge 10.25%? Bitcoin ETFs See $65M Outflow
1min read On April 7, 2025, Digital Currency experienced a significant drop of 10.25% in pre-market trading, reflecting a notable shift in investor sentiment.
Recent developments in the cryptocurrency market have highlighted a significant outflow from Bitcoin ETFs, with a total of $65 million exiting the market on April 4, 2025. This outflow was led by major players such as Grayscale's GBTC, Ark 21Shares' ARKB, and Bitwise's BITB, indicating a growing caution among investors. The lack of new inflows suggests that investors are either taking profits or waiting for a new catalyst to re-enter the market.
Despite the heavy outflows, trading volume for Bitcoin ETFs remained high, reaching $4.43 billion, nearly double the previous day's tally. This paradox of high trading volume without inflows indicates that while traders are active, their confidence in the market may be waning.
In contrast, Ether ETFs showed signs of recovery, with Franklin Templeton's EZET logging a $2.06 million inflow. This small but significant inflow suggests that some investors are rotating their positions from Bitcoin to Ether, potentially driven by the narrative around Ethereum 2.0, staking, and layer-2 adoption.
The recent market movements suggest a potential shift in investor sentiment, with Bitcoin's dominance in the ETF space being challenged by Ether's quiet rebound. While it is too early to call this a full-on trend reversal, the difference in flows between Bitcoin and Ether ETFs indicates a psychological turning point in the market.
